Meta has struck an additional $21 billion AI cloud infrastructure deal with CoreWeave, the Nvidia-powered data center company, expanding what was already one of the largest cloud computing arrangements in the technology industry. The new deal, announced on Thursday (April 9), runs from 2027 to 2032 and sits on top of a prior $14.2 billion agreement disclosed in September that runs through 2031. Combined, Meta’s total commitment to CoreWeave now stands at $35.2 billion.
Why Meta has partnered with CoreWeave
CoreWeave’s data centers are packed with hundreds of thousands of Nvidia graphics processing units (GPUs), the specialized chips that power the training and running of large AI models and are used by almost all big AI companies. CoreWeave offers a critical piece of ready-made infrastructure to Meta.Meta is actively building its own AI facilities, including a $10 billion data center in Texas announced in March that will be built in the coming years. But the problem is the pace of AI development which means that it needs resources now to compete with other large technology companies and meet their own demand.“Sure, they can buy compute,” he said, referring to Meta and its peers, adding, “Yet, for some reason, all these people who can buy compute also feel the need to buy it from us, because of the quality of the product that we deliver,” CoreWeave CEO Mike Intrator told CNBC.Meta has been a CoreWeave customer since 2023, and Intrator said his company’s infrastructure has allowed Meta to make better use of the AI talent it has hired. “They hired from across the space, people who have used infrastructure from all different folks, and they came back to us,” he said. Meanwhile, a Meta spokesperson described the deal as part of the company’s “portfolio-based approach to infrastructure, as we invest in capacity for our AI ambitions.”
Meta’s deal with Google, AMD
The tie-up with CoreWeave is not just one chip deal that Meta has struck. The company is also in agreement with AMD for its AI chips and reports have said that the company also struck a $10 billion accord with Google to rent their TPUs for inference purposes.
